Bankruptcy Coffs Harbour, Just what is the Deal with Debts?

What Debts are erased if I go Bankrupt?

The basic answer is that when it involves Bankruptcy most debts are wiped, and I have also included a table below for you to look at.

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) alongside any debts arising from uninsured Motor-vehicle claims and educational debts like HECS or FEE-HELP. These debts are not cleared away when you file for bankruptcy.

What about Secured Debts?

A secured debt is a vehicle loan or a home loan; it is a debt that has some definite security attached to it. So for instance if you buy a new car for $40,000 dollars the security for this car is the actual car itself.

So, can my secured debts be erased if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt eliminated if you simply hand back the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts could be wiped but the asset needs to be sold or returned. This is just one part that, when it comes to Bankruptcy, it is vital to get professional guidance - like that provided at Bankruptcy Experts Coffs Harbour.

What about my Tax Debts with the ATO can they be eliminated If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be eliminated with bankruptcy. If you have a business with any form of debts receive some advice because it is not always so simple. Feel free to call us here over at Bankruptcy Experts Coffs Harbour if you have any questions on 1300 795 575. Or feel free to head to our website: www.bankruptcyexpertsCoffsHarbour.com.au

What about my business or Company debts?

In some cases when it comes to Bankruptcy we can aid you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Typically you may have to liquidate a company to deal with the debt this way. When it comes to Bankruptcy, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Coffs Harbour we specialise in business and personal debts so call us here at Bankruptcy Experts Coffs Harbour if you have any questions about Bankruptcy on 1300 795 575. Or feel free to visit our website: www.bankruptcyexpertsCoffsHarbour.com.au

Bankruptcy in Coffs Harbour - Will I lose my house if I go bankrupt?

Bankruptcy Coffs Harbour is a difficult process, but I know from meeting with thousands facing the prospect of bankruptcy over the years, that nothing worries people more than the notion of losing the family home. Almost everybody is psychologically connected to their home - it's where the kids have grown, it's where you take pleasure in life on a day to day basis.

Will you lose your home if you go bankrupt? The response is a resounding maybe. (not very helpful, I know) People generally think it's an inevitable consequence and a part of Bankruptcy, and because of this push themselves to the brink of insanity to not lose the family home. But when it comes to the whole process of Bankruptcy, a key advantage of Debt Agreements and Personal Insolvency Agreements is you can keep your house. The reason is simple: you've agreed to pay back the debt you are in.

So how is it possible to keep my Coffs Harbour house, you ask? It's easier if I explain the basic principle behind the Bankruptcy process as administered by the trustee, then you'll have a more clear image.

The function of the bankruptcy trustee is to firstly abide by the regulation of the bankruptcy act 1966 (it's a very dull read about 600 pages if you are wondering).

Within that regulatory framework, the trustee is to help recuperate monies owed to your creditors, that is done in a bunch of various ways but it mainly comes down to income and assets. The trustees role is to collect payments over and above your income threshold. The further role is to sell any assets that can contribute to paying back your debts.

What this seems is that yes the trustee will sell your house right? Not necessarily. The only reason the trustee will sell any asset including your house is to get money to pay back your debts. If there is no equity in your house then it's pointless to sell your home. This is happening more and more since the GFC as house prices in many areas have been heading south so what you paid 4 years ago may not necessarily reflect the price today.

A quick word of advice here if you have a house in Coffs Harbour and are looking at Bankruptcy: get a skilled professional to help you through this process, there are loads of variables in these scenarios that have to be considered.

You might wonder, why would the bank want bankrupt customers? wouldn't they choose to sell your house and not take the risk? The bank that has nicely lent you the money for your house is making good money every month in interest out of you, month in month out, provided you keep up to date with your fees then the bank wants you in there at all costs. Ultimately however it's not the bank's call if the trustee determines that there is plenty of equity in your house the trustee will force you and the bank to sell the house.

When you file for bankruptcy you are asked to note the value of your house and the amount you owe on the house. A tip if you are aiming to work out the value of your house: use a registered valuer as this will offer you peace of mind, don't use your neighbours' gut feel recommendations or a real estate agents advice to get to this figure. When you get a valuer out to your property, make certain you tell the valuer to value the property for a quick sale, see to it you mow the lawn and don't leave the kitchen in a mess also.

Valuers used to offer two valuations: one for a quick sale and one for a well marketed non time delicate sale. These days that's not the case, but if you meet them and tell them you need to sell your home in the next 30 days you may sway the result. The idea is that you want a sensible sell now figure.

There are two main reasons this valuation technique is critical to you: one you will certainly have peace of mind ascertaining the market value of your house, and after that you can easily build your equity position. Secondly, your house may be really worth far more than you thought. Get some advice before carrying this out. The amount of times I've met clients that have sold their family home of 20 years simply to figure out I could of helped them keep it; unfortunately this happens all too often

When it comes to Bankruptcy and houses, another serious consideration is ownership, often houses are acquired in joint names. In other words a couple may be a house 50/50 using both incomes to make the payments. If one party declares bankruptcy and the other party does not, the equity is only factored on the 50 % of the property.

When it comes to Bankruptcy, this is just one of probably numerous scenarios that are possible when it relates to the family home. Bear in mind the non-bankrupt party can buy the bankrupt's portion of the home in bankruptcy also. I have to repeat this but get some advice on this area of Bankruptcy because it is very tricky and each and every case is different.

If you really want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak to Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: www.bankruptcyexpertsCoffsHarbour.com.au.

Bankruptcy in Coffs Harbour - Who do I talk to?

Should I talk to my accountant about Bankruptcy?

The answer seems clear doesn't it: if anyone knows your financial situation well in Coffs Harbour, It's going to be your accountant. However, the short answer is a resounding No! It's not that your accountant does not have your best interests in mind when it comes to Bankruptcy, it's that his know-how lie in helping you save you money at tax time, minimizing your tax liability and lodging your BAS.

Most accounting degrees will devote hardly any to no time on insolvency, it's generally performed as a post graduate speciality course for those who want to work in the field. Unless your accountant is an insolvency expert, he wouldn't know that a lot about the effects of Bankruptcy, I can assure you insolvency specialists know much about tax returns or BAS in. If you do happen to find an insolvency accounting firm in Coffs Harbour, they often tend to be large firms with very nice offices who charge accordingly.

Should I consult my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Coffs Harbour but more than likely it won't do you much good. Solicitors are really good at carrying out things lawyers do, like helping you do your Will and buying your house and trying to keep you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Coffs Harbour normally have either a legal or accounting qualifications, and the reason for that is simply that you can't enrol in the post graduate study to become a qualified insolvency practitioner except if you have a law or accounting degree.

Just like there are a couple of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay a substantial price for their expertise.

Should I talk to a financial counsellor about Bankruptcy?

Yes! There are a lot of financial counselling services to help you with this, they have no hidden agendas and they're a fantastic option for really helping you analyze your circumstance when it comes to Bankruptcy. If you find yourself stressing constantly, not sleeping, not eating or over-eating and thinking of money pressures constantly, then get some help.

There are also charitable organizations around Coffs Harbour like Lifeline that offer a remarkable service. They will be a sounding board if you just need somebody to review with you what your possibilities are. Don't let your financial trouble destroy your life - ultimately it's just money.

If you wish to learn more about what to do, where to turn and what points to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: www.bankruptcyexpertsCoffsHarbour.com.au.

Bankruptcy in Coffs Harbour - Will I lose my business if I go bankrupt?

When people in Coffs Harbour come to me seeking to discuss Bankruptcy, they are typically packed with questions. The internet has lots of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make things more clear. One of the very most normal troubles is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are a manager of a company any shape or size you can maintain your business if you wish to. In Coffs Harbour, businesses that become insolvent have a few options such as liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complex area so get some skilled advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are some necessary implications for directors of companies when it comes to Bankruptcy in Coffs Harbour: A bankrupt can not be a director of a company, so if you have a pty ltd company you definitely will need to resign as a director as soon as you're bankrupt.

A restriction that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. Generally there are things you will need to make known as an aspect of that but basically you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. For example, if you run a building company, your license will be suspended once you're bankrupt and as a consequence you can no longer trade without that license, so make sure you are asking the ideal questions when it comes to licenses and Bankruptcy in Coffs Harbour.

However if your business is not impacted directly by such issues, then you'll need to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not acquire heaps of debt in your company, then go bankrupt and after that open the doors the next day like almost nothing had happened. There are laws in place to avoid what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just an issue of speaking with the correct people about Bankruptcy. Here in this situation you may think you need a liquidator for your company, and you may be right, but keep in mind that every liquidator is unique and have their own motives. Liquidators earn money from your liquidation - heaps of money - so just what advice do you believe you will get?

When it comes to Bankruptcy, I believe that giving generic advice in this area is possibly unsafe as it can have very major implications for directors and business owners. This is since it is just one of those cases where what the right advice for one business owner is the inappropriate advice for the other. There are some principles however, that you may benefit from. There is no limitation to the size of the business you run though you are bankrupt. You can employ staff. You can continue to deal with your providers under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it comes to Bankruptcy, don't get too uneasy about what you can and can't do as a business owner, just get the appropriate advice ... If you wish to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to consult Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: .bankruptcyexpertsCoffs Harbour.com.au.

Bankruptcy in Coffs Harbour - Changes to help Small Business and Entrepreneurs

Do you have an idea of how much Bankruptcy CoffsHarbour is changing? The Australian Government in late 2015 recommended some innate changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must continue to be bankrupt, however, this 3 year period may in fact be reduced down to just 12 months. So if you are inquiring about Bankruptcy, this news may be somewhat important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 proposed that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These alterations to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting family assets was very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws discouraged investors from supporting start-ups, and as a result mentoring had been "driven out of the system".

"They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we 'd probably see more willingness. It could be more important than the money.".

Fraudulent Behavior

The argument about this Bankruptcy issue in Coffs Harbour that some come up with is that this shift will only reinforce fraudulent behavior opening pandora's box so to speak for the unscrupulous to defilement of the bankruptcy system. We have taken a look at the minimum, but on the other side of the matter, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has acted in an unethical or fraudulent way, and there are no recommendations to change the effects of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Coffs Harbour, I have a decent share of knowledge when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Coffs Harbour I have never caught someone abusing the system or acting in an irresponsible way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur look at the very challenging task of bankruptcy, not once have I thought they are happy about it. The typical small business owner or entrepreneur in Coffs Harbour does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent injustice that will be rampant if these changes occur, what a joke!

A Win for Small Business

These suggested changes will be good for often the best and brightest in Coffs Harbour not get kicked out of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, managers keeping this country going.

There is a fine line with the things the government is trying to do here, because they are attempting to balance helping people who have made decisions out of their control, and discouraging people from making oversights that land them in trouble and therefore an issue of Bankruptcy. However you also don't want to kill the experience and knowledge that business owners have. You surely don't want to smash people simply because they have had a sincere failure in a large or small start-up enterprise that has not gone well.

At the major end of town large established companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of insolvency were decreased because directors are distressed they'll be personally responsible in an insolvency arrangement if the new project doesn't work out.

The government's proposed 'safe haven' modifications for directors of companies will enable Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these differences will be detrimental to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is extensive. When it comes to Bankruptcy in Coffs Harbour not a day goes by where I don't find out the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you need some assistance with your debts in Coffs Harbour or are just considering Bankruptcy, feel free to phone us here at Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: bankruptcyexpertscoffsharbour.com.au

Bankruptcy in Coffs Harbour - does it matter if it is voluntary?

When it comes to Bankruptcy Coffs Harbour, usually people aren't aware that there are both voluntary, and involuntary bankruptcy - both have different methods and guidelines.

Involuntary bankruptcy occurs when somebody you owe money to involves the court to declare you bankrupt. Normally when you get one of these kinds of notices, you have 21 days to pay all the debt. If you don't, then the creditor goes back to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the documents in then afterwards you are bankrupt.

You can object to a bankruptcy notice by going to court following the 21 days have expired and put your case forward, to stop it going to the next level. Apart from the way you became bankrupt there is in reality no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're managed to in the same way.

However, when it comes to Bankruptcy for this, the stress, torment and fear that accompanies this process is incredible. If you think you are in all likelihood to be made bankrupt by someone, get some advice and act on that advice. Generally I've found it's always far better to know what you can and can't do before you have an individual bankrupt you. Once you are bankrupt, it's normally too late.

Voluntary Bankruptcy

Alternatively, when it comes to Bankruptcy, sometimes there are times that it is the most ideal option. So you may need to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for everyone of course, but commonly I find that one way you could work it out is to figure out just how long it will take you to pay all of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may really help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who came to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the rate she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can help you think this through. If you move house and fail to remember to pay your $30 phone bill for 6 months more, it's very likely the telephone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file very seriously damaged for that period of time - and all of this will affect how you need to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unethical. The punishment doesn't seem to match the crime in my book. So if you currently have defaults on your credit report for 5 years, keep in mind that bankruptcy is on your credit file for a total 7 years then its erased completely.

So if your credit rating is a big aspect in trying to decide whether to participate in a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest variation is that with a DA or PIA you pay back the money and still have it on your file for 7 years.

Bankruptcy

I have stated the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element most people are afraid of when they come to me to talk about their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all finished with no strings attached. As compared to countries like the United States, our bankruptcy laws are really reasonable.

I don't claim to know why that is but a few hundred years ago debtors went to prison. These days I suppose the government thinks the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which in turn costs the taxpayer anyway.

Bankruptcy wipes all your debts including ATO debts except for a few things:

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not insured.

There is far more that can be said about this and Bankruptcy in general but the purpose of this blog was to help you decide between a few possible options. When getting some advice, always remember that there are always possibilities when it involves Bankruptcy in Coffs Harbour, so do some study, and Good luck!

If you wish to learn more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to talk to Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website:bankruptcyexpertsCoffs Harbour.com.au.

Bankruptcy in Coffs Harbour - Will my income be affected if I go bankrupt?

Bankruptcy Coffs Harbour is a intricate process, and you need to ensure you get the right insight. And when it comes to your income being affected, the answer to the question is maybe. The first thing you have to know about going bankrupt is there is no constraint on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to understand about this area of Bankruptcy is how much you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand sum you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can get a hardship variation that raises the threshold amount, if you have costs in Coffs Harbour such as medical, child care, considerable travel to and from your job, or a situation where your spouse used to work but is not able to support the family income.

Some of the useful parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always considered in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you provide $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.

There are a lot more issues covering income and what is or isn't thought of as income - if you're not sure, it's ideal to get specialist advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund so long as that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your issue is more challenging, then please get professional advice in Coffs Harbour. I may seem like a broken record, but remember that it's always a good idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Coffs Harbour on 1300 795 575, or check out our website: bankruptcyexpertsCoffs Harbour.com.au.

Bankruptcy in Coffs Harbour - Choices, Choice, Choices

When it comes toBankruptcy Coffs Harbour, there are a number of choices that we get given depending upon who we are, who we talk to, and what exactly has happened. The most common trouble I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Coffs Harbour, a lot of the info you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap all of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but these guys won't be doing it free of charge. Please do not misunderstand me: if you consider your financial problems in Coffs Harbour can possibly be solved by paying less interest, then go on and investigate the options. Even a small amount of interest saved over years easily adds up.

Typically I find if you are reading this blog you've most likely tried to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is no good, and your credit file definitely has defaults on it so no one will offer you a loan, consolidated or otherwise,.

• By the time you work it all out, you're so far down a hole that saving on a bit of interest just won't make a great deal of difference,.

• You've undoubtedly gotten to the stage where you've had more than enough, you're emotionally worn down, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it relates to Bankruptcy in Coffs Harbour, what's the difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability is the main thing Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - might I add - regulated trustee including the government trustee ITSA, and not a private company that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they arrange a deal on your behalf. You can give a lump sum settlement figure or take part in a payment plan, or you can offer them assets as an alternative to cash. This may sound acceptable when it comes to the issues with Bankruptcy - that is until you discover that one of the difficulties with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they don't, your plan is denied or ought to be renegotiated.

Generally the people you owe money want all their money back in addition to interest. Sometimes they'll go for less than the amount you owe them - it's generally a percentage of the debt - but allow me to stress this aspect: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will actually settle for.

In many cases you'll have to pay back 100 % of the debt owed. This is not because your creditors are greedy or have a mean streak, it's because the administrators take 20 % of whatever is decideded upon with the people you owe money to. That applies whether you use a private company for this process or ITSA, the government body setup to administer to these PIAs.

When it comes to Bankruptcy and insolvency I've come across creditors opting for less 80 % on rare occasions, but that usually only occurs with a public company entering into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of brilliant lawyers and some very clever structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Coffs Harbour aren't going to get that lucky!

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website:bankruptcyexpertsCoffs Harbour.com.au.